Siteserv revenues rise on acquisitions

Building services group Siteserv said revenues have more than tripled to €133.7 million, lifted by acquisitions.

Siteserv said pretax profits increased from €5.3 million to €12.2 million in the year to the end of April.

Siteserv has diversified from its orginal fencing and scaffolding business into an infrastructure and utilities firm following a series of acquisitions.

It is involved in the petrochemical, power generation, schools, hospitals and pharmaceutical sectors in the UK and Ireland.

Brian Harvey, Siteserv chief executive said last year had been one of diversification for the group. "EBITDA has increased to €22.7 million (up from €8.1 million in 2007) and operating profit has increased to €18.7 million (2007 €7.4 million)."

Last year Siteserv purchased three businesses: Sierra Communications a civil engineering and cable utilities firm; RoanKabin which provides modular and portable buildings and Debrorah Service which provides services to the power generation industry.

The group's access division which includes scaffolding and fencing services had a tough second half due to its exposure to slowing construction activity in Ireland.

Revenues from this division were broadly flat at €40.9 million although this was offset by a strong performance in the infrastructure and utilities division.

Looking forward the company said the most recent year had "redefined our business" as it had diversified into new markets.

"Siteserv is strongly positioned to secure future revenues from regulatory and non discretionary spend", the company said.

Davy analyst Robert Gardiner said the results were broadly in line with estimates and represented a solid out-turn in difficult trading conditions. "In particular, management has delivered on its stated strategy of diversifying away from new build in Ireland (now less than 10 per cent of group), integrating the acquired businesses and moving into the UK market."